Capital Southwest Corporation Plans Monthly Dividend of $0.19 (NASDAQ:CSWC)

Capital Southwest Corporation (NASDAQ:CSWC) announced a monthly dividend on Thursday, August 27th. Shareholders of record on Thursday, October 15th will be given a dividend of 0.1934 per share by the asset manager on Friday, October 30th. This represents a c) dividend on an annualized basis and a yield of 9.1%. The ex-dividend date is Thursday, October 15th.

Capital Southwest has increased its dividend payment by an average of 0.0%per year over the last three years and has increased its dividend every year for the last 2 years. Capital Southwest has a dividend payout ratio of 99.1% meaning its dividend is currently covered by earnings, but may not be in the future if the company’s earnings decline. Research analysts expect Capital Southwest to earn $2.37 per share next year, which means the company should continue to be able to cover its $2.32 annual dividend with an expected future payout ratio of 97.9%.

Capital Southwest Stock Up 0.6%

Shares of NASDAQ CSWC opened at $25.40 on Friday. The stock has a market capitalization of $1.62 billion, a PE ratio of 14.03 and a beta of 0.69. The company has a current ratio of 0.17, a quick ratio of 0.17 and a debt-to-equity ratio of 0.62. Capital Southwest has a 12-month low of $19.37 and a 12-month high of $25.48. The stock’s fifty day simple moving average is $24.11 and its two-hundred day simple moving average is $23.35.

Capital Southwest (NASDAQ:CSWC) last issued its quarterly earnings data on Monday, August 3rd. The asset manager reported $0.58 earnings per share for the quarter, topping analysts’ consensus estimates of $0.56 by $0.02. Capital Southwest had a return on equity of 13.88% and a net margin of 46.68%.The firm had revenue of $61.05 million during the quarter, compared to analysts’ expectations of $61.22 million. During the same period in the prior year, the business posted $0.61 EPS. As a group, analysts expect that Capital Southwest will post 2.27 EPS for the current fiscal year.

Analyst Upgrades and Downgrades

A number of analysts have recently weighed in on the stock. Citizens Jmp raised their price target on shares of Capital Southwest from $25.00 to $26.00 and gave the company a “market outperform” rating in a report on Wednesday, August 5th. Citigroup reissued a “market outperform” rating on shares of Capital Southwest in a research report on Wednesday, August 5th. B. Riley Financial raised their target price on shares of Capital Southwest from $24.50 to $25.50 and gave the company a “buy” rating in a research note on Wednesday, August 5th. Finally, Weiss Ratings reaffirmed a “buy (b-)” rating on shares of Capital Southwest in a research report on Thursday, June 18th. Six analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $23.60.

About Capital Southwest

Capital Southwest (NASDAQ: CSWC) is a publicly traded investment firm structured as a business development company (BDC) that provides customized financing solutions to middle-market companies across the United States. The firm offers a spectrum of debt and equity capital, including senior secured loans, mezzanine debt, and both preferred and common equity investments. By partnering with corporate management teams, Capital Southwest seeks to support growth initiatives, recapitalizations, acquisitions, and ownership transitions.

Founded in 1961 and headquartered in Dallas, Texas, Capital Southwest has cultivated a track record of long-term partnerships with privately held businesses and select public companies.